An empirical assessment of the Istanbul International Financial Centre Project

This paper tests the determinants of establishing a financial centre in the city of Istanbul by analyzing the results of a questionnaire survey which was conducted to elicit the perceptions of people working in the Turkish financial industry. We find that Istanbul has the potential to become a regional financial centre; however, the city, though improving, does not yet meet the criteria of being a financial centre. The city has a long list of issues to address, from Economic Conditions to Public Services and Social Environment, before its problems are solved. Until completion of all these tasks, the Istanbul International Financial Centre Project announced by the government will end up only being a much-publicized prestige project.